Returnee entrepreneurs’ effects on external and internal CSR in China: the moderating role of market embeddedness and government endorsement
ISSN: 1750-614X
Article publication date: 27 April 2023
Issue publication date: 8 February 2024
Abstract
Purpose
Little attention has been given to the effects of returnee entrepreneurs on external and internal corporate social responsibility (CSR). This study aims to investigate whether returnee entrepreneurs engage in more external or internal CSR and to further explore the contingency effects of foreign market embeddedness and local government endorsement.
Design/methodology/approach
This study uses 11,967 startups in China to examine the relationship between returnee entrepreneurs and external and internal CSR. The authors use an ordinary least square regression and propensity scoring matching approach to analyze the data.
Findings
The empirical results show that returnee entrepreneurs are more likely to undertake external CSR but less likely to undertake internal CSR. Foreign market embeddedness and local government endorsement have opposite moderating effects on these relationships.
Practical implications
This study has important implications for returnee entrepreneurs’ strategic choice between external and internal CSR and also provides theoretical support for policymakers to make effective and enforceable CSR policies.
Originality/value
This study discusses how returnee entrepreneurs implement external or internal CSR in China, answering the call to distinguish between external and internal CSR. Drawing on a legitimacy perspective, the authors find interesting and seemingly counterintuitive effects of returnees on external and internal CSR, which also necessitates distinguishing between these two types of CSR. In addition, the authors find different moderating roles of foreign market embeddedness and local government endorsement.
Keywords
Acknowledgements
The authors are grateful to Editor Cherrie Zhu and the two anonymous reviewers for their insightful comments and constructive suggestions that greatly enhanced the quality of the paper. The authors would also like to thank Chengcheng Liu for participating in their discussion and giving them very helpful comments. This work was supported by the Fundamental Research Funds for the Central Universities (2022NTSS10) and the Science Foundation of China University of Petroleum, Beijing (No. 2462023YJRC017).
Citation
Li, L., Qi, J. and Li, J. (2024), "Returnee entrepreneurs’ effects on external and internal CSR in China: the moderating role of market embeddedness and government endorsement", Chinese Management Studies, Vol. 18 No. 2, pp. 405-428. https://doi.org/10.1108/CMS-12-2021-0522
Publisher
:Emerald Publishing Limited
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